Barclays announces 5,000 job cuts as part of AI efficiency drive

Barclays is cutting around 5,000 staff this year as it introduces more artificial intelligence (AI) into its processes. The banking group said 1,000 posts had already been closed and it expects a further reduction of 4,000 to be complete by the end of 2026. The cuts amount to 5% of its global workforce with most of them among operational and functional roles. Barclays said the cuts were the result of investments in technology, with AI making some work processes more efficient. The banking group is reaching the end of a three year cost-cutting programme focused primarily on its UK retail banking arm, although the investment banking division is also affected. Barclays also revealed it made £2.3bn profit in the latest three months it reported on, higher than a year go, but slightly less than forecast. Economists have been watching companies' results carefully for signs that investment in new technology, and AI specifically, is making a difference in their day-to-day operations, leading to greater efficiency and lower employment. Barclays group chief executive CS Venkatakrishnan said the job cuts were "a result of the investments which we've made into technology over a number of years and which we continue to make".